ADTL To Build Rs 753 Crore MiG-29 Simulator Centre
Alpha Design Technologies Ltd. (ADTL) has signed the first of two-phase defence contracts, together worth Rs 753 crore, with the Ministry of Defence and Russia’s RAC MiG. The company has been chosen by the two to build, own and maintain two types of simulators for fighter aircraft.
Pilots of the Indian Air Force will train on these simulators before flying the upgraded Russian-origin MiG-29 fighters.
Under the first contract worth Rs 53 crore, Alpha Design would set up and run the MiG-29 simulator centre at the Adampur airfield near Jalandhar initially for two years. The second 18-year contract would be signed after two years, said ADTL CMD Col HS Shankar.
ADTL is involved in military aircraft, electronic devices for the military and satellite assemblies for ISRO. It has hired former IAF pilots as trainers. Training on simulators can save up to 75% of the cost of fuel and wear and tear of flying an actual plane, he added.
Mazagon Dock IPO Scores over other DPSUs
Mazagon Dock Shipbuilders attracted the highest ever interest amongst all PSUs that have hit the primary market, with its IPO subscribed 157.41 times. It beat IRCTC, whose initial public offer (IPO) last year, drew 109.75 times subscription.
Data showed HAL, the largest defence PSU in terms of value of production, had listed at a 5 per cent discount to its issue price on March 28, 2018. The scrip got listed at Rs 1,152, down 5.19 per cent on NSE. It listed at a discount of 3.08 per cent on BSE.
Missile-maker Bharat Dynamics, which manufactures anti-tank guided missiles (ATGMs) and surface-to-air missiles (SAMs) and is a co-development partner with the DRDO for the next generation of ATGMs and SAMs, had listed 13.55 per cent down at Rs 370 over the issue price of Rs 428 on NSE. The stock had fallen 15.88 per cent on BSE when it was listed on March 23, 2018.
Mishra Dhatu Nigam, which supplies various super alloys and special steels to defence and other strategic sectors for nuclear, aeronautical and space applications, also had a muted debut in 2018. It listed at Rs 87, down 3.33 per cent over the issue price of Rs 90. This company also comes under the Ministry of Defence.
Cochin Shipyard had debuted flat at Rs 435 over the issue price of Rs 432 in August 2017. This state-run firm, however, does not come under defence, but the shipping ministry. At the time of its IPO, the shipyard was in the race for three major tenders for the Indian Navy. The company is now constructing the largest warship for the navy i.e. the Indigenous Aircraft Carrier (IAC), according to the company’s website.
Garden Reach Shipbuilders & Engineers (GRSE), a Kolkata-based ‘Miniratna’ company that makes warships for the Indian Navy and the Coast Guard, fell 13.14 per cent at listing to Rs 102.50 in October 2018 over its issue price of Rs 118. On BSE, the scrip had debuted at Rs 104, down 11.86 per cent.
BEML, meanwhile, had a strong 11 per cent listing pop, but that was in 2007.
Mazagon Dock’s order book stood at Rs 54,700 crore as of March 31, which included work for building eight warships and four submarines. It is the only domestic yard that has the capability to build complex platforms such as destroyers, frigates, corvettes and conventional submarines.
The company’s current order book is 11 times its FY20 revenues, which offers a runway for revenue growth for the next five years, as it achieves the ‘bell curve’ impact on two of its largest shipbuilding projects viz. Project 15B (Destroyers) and Project 17A (Frigates). In addition, its associate company, Goa Shipyard (47.2 per cent stake), also enjoys a healthy book to bill of 15 times trailing 12-month sales as it executes order for two advanced frigates.
Defence Industry Can Meet Armed Forces Requirements: Army Vice Chief
The Indian defence industry needs to evolve to provide solutions for the protection requirements of armed forces, Indian Army Vice Chief Lieutenant General SK Saini said on 10 October while speaking at a Webinar on Force Protection organised by Indian Military Review.
He said a large number of Indian troops are deployed in super high-altitude areas where the temperature touches -50 degrees celsius. However, cold-weather equipment is imported.
Gen Saini said the character of warfare is undergoing a rapid change. The lethality and intensity powered by the latest technologies, the blurring of lines between friends and foes, combatants and civilians – makes it imperative for militaries to adapt to safeguard themselves and succeed in operations.
“While we are well on our way towards modernising and honing our war waging capabilities, protection of our assets is going to be a daunting task. It is a fact that forces and the resources which survive the enemy onslaught, both during peace and war, are the ones which will live to fight another day,” he said.
Gen Saini said the first priority is to ensure survivability while retaining the freedom of action to facilitate functioning without impairing operating efficiency. He said the second is economy of resources in terms of cost, effort and time must be assessed against threat manifestation and neutralisation.
“There is a requirement to focus on night-vision goggles, combat helmets, bulletproof jackets, light portable communication sets and many more,” he said.
The effort in this field must be to ensure a reduction in manpower commitment by integrating physical and electronic surveillance and incorporating automation and innovation in Perimeter Fencing, Intrusion Detection Systems etc.
He also said that amongst other threats, drones and UAVs stand out in their innovative employment and destructive potential.
“Considering their low cost, multi-use and dense proliferation, the threat will no doubt increase manifold in the years to come,” he said.
“In this context, third dimension threats may take precedence in the near future, for which we need to plan now. Both hard kill and soft kill counter-drone solutions including swarm technology are the need of the hour,” he pointed out.
Alpha Design Wins Contract to Upgrade Pechora Missile System
In a major fillip for Government’s push for indigenous defence manufacturing, the Ministry of Defence (MoD) has roped in private sector players Alpha Design Technologies Limited (ADTL) to upgrade the soviet era Pechora surface to air systems, Economic Times.
ADTL will be upgrading and digitising 16 of the Pechora missile and radar systems which are presently in operation under a contract worth Rs 591 crore. Also, the contract has an options clause, under which the number of systems to be upgraded and digitised could be taken up to a total of 24 in the coming years.
It should also be noted that the project would lead to the adoption of a host of indigenously developed technologies in the Pechora missile systems, like radar transmitter, thermal imager based electro-optical system and communication equipment.
The entire contract is to be executed within four years and the contract was signed last week. For the contract, ADTL has partnered with Russian entities to upgrade the missile systems which have been in service for over 30 years. It should be noted that as per ADTL’s chairman and managing director Col HS Shankar (retd), the upgradation of the existing systems will cost less than the procurement of fresh new systems.
The contract also gains significance, as ADTL beat public sector majors like Bharat Electronics Limited (BEL) to win it.
CCS Clears Rs 7796 crore Comm-unication Network Bid for ITI
The Cabinet Committee on Security (CCS) has cleared a project to establish a secure communication network for the Indian Army that will include modern optical fibre cable links to forward areas, with Public Sector Undertaking ITI set to implement the Rs 7796 crore plan.
The defence ministry has said that the new Army Static Switched Communication Network (ASCON) will provide a “big boost to the operational capability of the defence forces”, given the current operational situation on the border with China and provides an opportunity to the PSU to give an “impetus to the Indian economy”.
The project will lead to a complete upgrade of military communication systems that will shift to Internet Protocol (IP) / Multi Protocol Label Switching (MPLS) Technology. “Optical Fibre Cable (OFC), Microwave Radio and Satellite will be used as communication media,” the defence ministry said.
The project will provide better survivability, responsiveness and high bandwidth in any operational scenario and enhance the communication coverage of network close to international boundaries, like the Line of Actual Control (LAC), where tensions have been simmering with China since May.
The network will extend the high bandwidth communication to the remote operational areas in Central and Eastern Sectors and enhance communication reach to the forward locations in the Western border too.
The project will have indigenous content of about 80 percent, with official saying that it would come as a boost for the industry as well. “The project involves execution of civil works, laying of OFC, tower construction, etc. and with utilization of local resources, hiring of manpower, it would generate employment opportunities especially to the people in remote border areas, support and boost rural economy, assist in upliftment of the local of the local economies, provide skill development during the prolonged period of execution and maintenance of the network,” the ministry has said.
Defence Secretary Invites MSMEs to Defence & Aerospace Sectors
The CodissiaDefence Innovation and Atal Incubation Centre, on 28 October, signed MoUs in Coimbatore with 5 Base Repair Depot, Air Force, and the Naval Ship Repair Yard, Kochi, for indigenisation of their components and products.
The Union Government is looking at doubling the number of Micro, Small and Medium-scale Enterprises (MSMEs) in the defence and aerospace sectors in the next four to five years, Defence Secretary Ajay Kumar said.
Launching defence activities through CDIIC at a virtual meet, he said the industrial eco-system and MSMEs in Coimbatore should now get into the defence and aerospace sectors, which are at a watershed moment in the country.
With several initiatives of the government to indigenise and encourage innovation in the sectors, there were huge opportunities for MSMEs. The units should look at not just producing for the Indian needs but also explore export opportunities. Global OEMs are open to sourcing from India, he said.
Ajay Kumar exhorted the MSMEs to ensure that the products that they made were of high quality and cost-effective. Further, testing and certification procedures need to be bench-marked against the best in the world. “This is an area we need to start doing some work. The cost should come down for testing and certification and there can be tremendous use of technology for it. The Codissia and CDIIC should partner with the government to identify other areas that can be taken up under indigenisation and innovation,” he said.
Sanjay Jaju, Joint Secretary (DIP), Department of Defence Production, said 50 products had been identified for indigenisation with CDIIC in four years.
V. Sundaram, director of CDIIC, said 10 incubatees would be selected for incubation this year and four of them had been identified. Another six would be finalised soon. The CDIIC would look at having testing and prototyping facilities too. He urged the government to come out with a single tender process for MSMEs.
Italy’s Fincantieri Joins Hands With Cochin Shipyard
Italian shipbuilding giant Fincantieri has signed a Memorandum of understanding (MoU) with India’s state owned shipbuilder Cochin Shipyard Limited (CSL), the company announced on 27 October.
Fincantieri said its MoU with CSL will help both the partners in designing and local manufacturing of new ships for Indian defence market. The MoU will be followed by detailed agreements.
“With this agreement Fincantieri enhances its presence in the country, providing further momentum to the long-standing partnership with the governmental group CSL, which owns facilities both on the East and West coast of India,” Fincantieri said in a statement.
The shipbuilder based in Trieste, Italy said it has been following the renewal and expansion program of the Indian Navy’s fleet for some time and considering the country as its strategic market.
“In the past, the group entered into contracts with CSL – to which the Indian Navy awarded the construction of the aircraft carrier Vikrant – for the design and integration of the unit’s engine system, as well as for the supply of complementary services,” said the company.
Talking about its India operations, Fincantieri said it has also delivered the two fleet tankers Deepak and Shakti to the Indian Navy, in addition to the research vessel Sagar Nidhi built for the National Institute of Ocean Technology (NIOT).
“Different areas of the Fincantieri group may benefit from these understandings: the Naval Vessels Division, the Systems and Components Division, as well as Seastema, Vard Marine and Fincantieri India,” added the company.
